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Three banks report improved earnings in Q2

Three banks showed quarter-on-quarter recoveries in their bottom lines last quarter thanks to the calmer political situation.

TMB Bank yesterday reported consolidated second-quarter net profit of Bt2.57 billion against Bt251.54 million in the same quarter last year and Bt1.62 billion in the first quarter this year.

The second quarter was challenged by the economic slowdown stemming from the political strife, but its loans picked up slightly by 2.4 per cent from the previous quarter, mainly thanks to corporate and medium-sized business customers.

Non-interest income

Its non-interest income also saw broad-based improvement quarter on quarter.

TMB has made significant progress in reducing non-performing loans. Last quarter,

it sold Bt3.3 billion worth of legacy NPLs and wrote back Bt200 million of excess provisions.

After the sale, its NPL ratio fell from 3.85 per cent to 3.40 per cent. For the bank only, the NPL ratio was reduced to 3.15 per cent. Its coverage ratio rose from 138 per cent to 143 per cent.

Lending to soar

This half, lending should continue riding the recovery in overall economic conditions.

LH Financial Group also observed indications of improvement in consumer confidence and the economy last quarter due to the easing of political tensions and the National Council for Peace and Order's economic stimulus measures.

Its consolidated second-quarter net profit rose to Bt306.35 million from Bt294.07 million a year earlier and Bt226.24 million in the first quarter of this year.

Tisco Financial Group's consolidated second-quarter net profit gained 6.1 per cent quarter on quarter to Bt991.78 million but still dropped 14.4 per cent year on year on the step-up of provisioning expenses to cushion against economic volatility.

The group still witnessed rising retail NPLs led by hire-purchase loans, causing NPLs in the second quarter to climb to 2.27 per cent from 1.89 per cent as of the end of the first quarter.


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